P3-9 Royston Realty reported the following accounts on its income statement:

Commissions Earned 54,000 CR

Travel and Entertainment 4,500 DR

Real Estate Fees 5,000 DR

Insurance Expense 780 DR

Computer Charges 864 DR

Advertising Expense 1,460 DR

Depreciation - Computer 450 DR

Office Supplies Expense 940 DR

Car Expenses 2,200 DR

REQUIRED: 1. Prepare the necessary entries to close the temporary accounts. 2. Explain why the closing entries are necessary and when they should be recorded.